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Federal Communications Commission
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This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

Report No. IB 98-39 INTERNATIONAL ACTION July 14, 1998

COMMISSION PROPOSES MAJOR STREAMLINING OF INTERNATIONAL SECTION 214 APPLICATIONS
(IB Docket No. 98-118)


The Commission has proposed steps that, if adopted, would eliminate roughly 75 percent of international service applications processed by the International Bureau. This action is the Commission's latest proposal to identify and eliminate regulatory burdens that are becoming unnecessary due to increased competition among carriers providing international services.

In the Notice of Proposed Rulemaking, the Commission proposes modifications to its international Section 214 authorization process and to the rules that apply to carriers once they are authorized to provide international services. The most significant proposal would enable any carrier to begin providing service on most international routes without first seeking Commission approval. A carrier would need prior Commission approval only to serve particular routes where it is affiliated with a carrier that operates in the destination market. Carriers taking advantage of this blanket authorization would be required to notify the Commission within 30 days after commencing service.

The proposals in the Notice would eliminate several categories of Section 214 applications and streamline and simplify the rules applicable to international carriers. Currently, the great majority of the applications being proposed for elimination are granted in a streamlined, 35-day process that does not result in a formal written order by the Commission. In addition to the blanket authorization, the Notice includes the following proposals:

(1) Allow authorized carriers to complete pro forma (non-substantial) assignments and transfers of control of international Section 214 authorizations without seeking Commission approval.

(2) Allow any carrier with a Section 214 authorization for global facilities-based service to use non-U.S.-licensed submarine cable systems without specific Commission approval.

(3) Eliminate the need to apply for a separate Section 214 authorization when applying for a common carrier submarine cable landing license.

(4) Reorganize and simplify the rules on contents of international Section 214 applications, and list the obligations of each category of authorized carrier in a separate section of the rules.

(5) Authorize the provision of switched services over private lines by declaratory ruling instead of requiring a Section 214 application.

(6) Eliminate the requirement that applicants for international Section 214 authorizations inform the Commission of every 10 percent or greater shareholder, and require only that applicants provide a list of every greater-than-25-percent shareholder.

The Notice initiates the latest proceeding that in the Commission's 1998 biennial regulatory review, which is required by the Telecommunications Act of 1996. The Act directs the Commission to review all regulations that apply to providers of telecommunications service and to repeal or modify any regulation it determines to be unnecessary as the result of meaningful economic competition.

Pro forma (non-substantial) assignments of international Section 214 authorizations and transfers of control of entities holding international Section 214 authorizations currently must be approved in advance by the Commission. Recently, the Commission adopted rules forbearing from the prior notification and approval requirements of Section 310(d) for pro forma assignments and transfers of control for wireless telecommunications licensees. For similar reasons, the Commission proposes in this Notice to allow international carriers to undertake pro forma assignments and transfers of control without Commission approval.

Under the rules proposed in the Notice, a carrier with a global Section 214 authorization for facilities-based service would be allowed to use any foreign submarine cable system in its provision of U.S. facilities-based international services. Current rules prohibit carriers from using foreign submarine cable systems that have not been individually approved. If it becomes necessary to prohibit the use of any specific cable system, that cable system could be added to the exclusion list maintained by the International Bureau. This proposed rule change would not affect the rules for use of non-U.S.-licensed satellite systems, which continues to be governed by the policies adopted in November in the Commission's Satellite WTO Order.

Currently, a carrier seeking to construct a new common carrier submarine cable system must submit two separate applications: one for a cable landing license and one for a Section 214 authorization. The proposals contained in this Notice would require that these carriers obtain only a cable landing license. The Commission noted that it will ask Congress to restructure the relevant application fees to make this initiative possible.

Action by the Commission July 6, 1998, by Notice of Proposed Rulemaking (FCC 98-149). Chairman Kennard, Commissioners Ness, Furchtgott-Roth, Powell and Tristani. Commissioner Furchtgott-Roth issuing a separate statement.

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News Media contact: Rosemary Kimball at (202) 418-0500.
International Bureau contacts: Douglas Klein or Peggy Reitzel at (202) 418-1470


July 14, 1998

PRESS STATEMENT OF FCC CHAIRMAN WILLIAM E. KENNARD

This Notice seeks comment on some aggressive initiatives for meaningful deregulation and streamlining that we believe are warranted by increased competition and international developments. Adoption of these proposals would not only relieve carriers of burdens that have become unnecessary, but they would allow the International Bureau to focus its limited resources on matters that are of the most regulatory concern. These proposals will help ensure that we regulate only when necessary and that we do so in a common sense manner that is not overly burdensome to carriers.

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